Loan against property explained in simple terms

A loan against property lets you borrow by pledging a residential or commercial property as collateral, while you continue to own and use it. Because the loan is secured, it can support larger amounts than many unsecured loans.

Common uses

Borrowers often use these loans for business needs, education, medical expenses or consolidating other debts. Lenders have their own policies about permitted end use.

“Your property is at stake, so borrow carefully and plan your repayments.”

Things to consider

The lender will assess the market value and legal status of the property, along with your income and credit profile. Make sure your title documents are clear and read the terms on prepayment and fees before you proceed.